The Schedule. General conditions CHANNEL 4 LICENCE ATTACHMENT TO VARIATION NUMBER 17 DATED 21 APRIL 2011 INDEX. 1. Definitions and interpretation

Transcription

1 CHANNEL 4 LICENCE ATTACHMENT TO VARIATION NUMBER 17 DATED 21 APRIL 2011 INDEX The Schedule Part 1 Definitions and interpretation 1. Definitions and interpretation Part 2 General conditions 2. Provision of the Service by the Corporation 3. Prohibition on charges 4. Fees 5. Contributions to the national television archive 6. VAT 7. Public service remit and statement of programme policy 8. Regional programming-making 9. Involvement of the Corporation in programme making 10. Schools programmes 11. Commissioning of independent productions 12. Broadcasting of independent productions 13. Original productions 14. General standards and requirements 15. News and current affairs 16. Party political broadcasts 17. Listed events 18. Advertising and sponsorship standards and requirements 19. Subtitling, signing and audio-description 20. Provision of additional services 21. Transmission arrangements and technical standards and requirements for the Qualifying Service 22. Transmission arrangements and technical standards and requirements for the Analogue Service 23. Retention and production of recordings 24. General provision of information to Ofcom 25. Renewal of the Licence 26. Fair and effective competition 27. Restrictions on the holding of licences 28. Compliance 29. Government directions and representations 30. Standards complaints 31. Fairness and privacy complaint 32. Publicising Ofcom s function 33. Digital Switchover 34. Power of Ofcom to vary licence conditions 35. Notices and service 36. Equal opportunities and training 36A DTT Clearance Programme

2 Part 3 Exceptions and limitations on Corporation s obligations 37. Force majeure Part 4 Conditions relating to enforcement of the Licence 38. Interest on late payments 39. Sanctions for breach of condition Annex Annex: Part 1 Requirements for the provision and content of the service 1. Definitions and interpretation 2. News 3. Current affairs 4. Schools 5. Original productions 6. Regional production 7. Independent production 8. Subtitling, sign language and audio description Annex: Part 2 Requirements relating to Digital Switchover 9. Cooperation and coordination with other parties 10. Annual report and information relating to digital switchover 11. Communications with viewers Annex: Part 3 Digital Switchover Date and timetable 12. Digital Switchover Date 13. Region by region sequence for Digital Switchover, and Relevant Digital Switchover Dates Annex: Part 4 Annex: Part 5 Annex: Part 6 Annex: Part 7 Details of analogue broadcasting stations - main stations and dependent relays Details of analogue broadcasting stations operated by the relevant Channel 3 licence holder for Wales - main stations and dependent relays Details of digital terrestrial broadcasting stations main stations and dependent relays Requirements Relating to the DTT Clearance Programme

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4 THE SCHEDULE Part 1 Definitions and interpretation 1. Definitions and interpretation (1) In this Licence unless the context otherwise requires: references to any accounting period of the Corporation shall be interpreted in accordance with Section 19(9) of the 1990 Act; the 1990 Act means the Broadcasting Act 1990 (as amended); the 1996 Act means the Broadcasting Act 1996 (as amended); references to all relevant codes and guidance means all codes and guidance referred to in this Licence, the 1990 Act, the 1996 Act or the Communications Act; Analogue C4 Area means, in relation to the Analogue Service, the coverage area that was achieved when the programmes included in the Service under the Analogue Licence were transmitted within the territories comprised in England, Scotland, Northern Ireland, the Isle of Man and the Bailiwicks of Jersey and Guernsey from the stations and at the powers specified in Part 4 of the Annex and in accordance with the Television Technical Performance Code; Analogue Service means the television broadcasting service in respect of which the Qualifying Service is the corresponding digital service; Analogue Licence means the analogue licence in force immediately prior to the grant of this Licence; appropriate network shall be interpreted in accordance with section 272(7) of the Communications Act for the purpose of interpreting conditions (1A) to (1D) of this licence. C3/C4 multiplex licence means the licence granted by the Independent Television Commission to Digital 3 and 4 Limited under Part 1 of the 1996 Act on 19 December 1997; C4 Area means, prior to the Relevant Digital Switchover Date, the Digital C4 Area (to the extent that the Qualifying Service is already being provided prior to the Relevant Digital Switchover Date in accordance with Condition 2(1)) and the Analogue C4 Area; and thereafter, C4 Area means the Digital Coverage Area; Service means, prior to the Digital Switchover Date, both the Qualifying Service and the Analogue

5 Service or either of them, as the context may require; and thereafter the Qualifying Service; Code on Sports and other Listed and Designated Events means the code giving guidance as to the broadcasting of sports and other listed events as drawn up and from time to time revised by Ofcom in accordance with Section 104 of the 1996 Act (and in the event that such code has not been drawn up by Ofcom or is not yet in force, Code on Sports and other Listed and Designated Events shall be interpreted in accordance with paragraph 51 of Schedule 18 to the Communications Act); Code on Subtitling, Signing and Audio-Description means the code giving guidance as to: (a) the extent to which the Service but not electronic programme guides should promote the understanding and enjoyment by persons who are deaf or hard of hearing and by persons who are blind or partially sighted and by persons with a dual sensory impairment of the programmes to be included in those services; and the means by which such understanding and enjoyment should be promoted; as drawn up and from time to time revised by Ofcom in accordance with Section 303 of the Communications Act; Commencement Date means the date referred to in Clause 2 of the Licence; the Communications Act means the Communications Act 2003; Commencement Relevant Digital Switchover Date means a date eight months before each Relevant Digital Switchover Date; Digital C4 Area means, in relation to the Qualifying Channel 4 Service, the coverage area achieved in respect of programmes included in the Service when broadcast in accordance with Condition 2(1) prior to the Relevant Digital Switchover Date and otherwise in accordance with Condition 2(2) below; Digital Switchover means the cessation of transmission of the Analogue Service; Digital Switchover Date means the date set out in paragraph 12 of Part 3 of the Annex by which transmissions of all analogue television services licensed under Part 1 of the 1990 Act, as listed in the Digital Switchover Timetable, must have ceased;

6 Digital Switchover Timetable means the document which sets out the regional timetable for Digital Switchover as published and revised from time to time by Ofcom, or any replacement to this document as may be published by Ofcom; Distribution means the conveyance of the Service (by whatever means and whether directly or indirectly) to the broadcasting stations from which it is broadcast so as to be available for reception by members of the public; DTT Clearance Programme means the clearance of digital terrestrial television services from the frequencies between 790 MHz and 806 MHz (which are known as channels 61 and 62). This policy is set out in Ofcom s Digital Dividend: Clearing the 800 MHz band statement published on 30 June 2009, and by the Government in its Digital Britain Final Report published on 16 June DTT services cleared from channels 61 and 62 as a result of this programme will be reallocated to alternative frequencies. The Table of Digital Terrestrial Broadcasting Stations for Multiplex Licences will be varied by Ofcom from time to time in order to reflect the necessary frequency changes. references to European programming, European programmes or matters of European origin shall be interpreted in accordance with the definition of European Works in Article 6 of the EC Directive 89/552/EEC, as amended by Article 1(7) of EC Directive 97/36/EC (the Television Without Frontiers Directive ); Fairness Code means the code giving guidance as to principles to be observed and practices to be followed in connection with the avoidance of unjust or unfair treatment and unwarranted infringement of privacy in the provision of television and radio services as drawn up and from time to time revised by Ofcom in accordance with Section 107 of the 1996 Act and paragraph 53 of Schedule 18 to the Communications Act; fairness complaint shall be interpreted in accordance with Section 110(4) of the 1996 Act; Independent Productions means programmes of such description as the Secretary of State shall pursuant to Section 277(2) of the Communications Act from time to time by order specify; initial expiry date means, in accordance with Section 231(6) of the Communications Act, 31 December 2014;

7 Initial Licensing Period means the period from the Commencement Date to the initial expiry date; international obligation of the United Kingdom has the meaning given to it in Section 405 of the Communications Act; Licensing Period means the Initial Licensing Period or any Subsequent Licensing Period, as the context shall require; listed event means a sporting or other event of national interest which is for the time being included in the list drawn up and published by the Secretary of State for the purposes of Part IV of the 1996 Act and a Group A event is a listed event that is for the time being allocated to Group A of that list and a Group B event is a listed event that is for the time being allocated to Group B of that list; the M25 area shall be interpreted in accordance with Section 362 of the Communications Act; Nominated Archive Body means the body for the time being nominated by Ofcom for the purposes of Section 185(2) of the 1990 Act; Ofcom means the Office of Communications as established by the Office of Communications Act 2002; peak viewing time means 6pm until 10.30pm each day or such other times as may be determined by Ofcom; programme unless otherwise stated includes an advertisement and anything included in the Service; Qualifying Service means the television broadcasting service known as for the provision of which this licence was granted with a view to its being broadcast in digital form; qualifying programmes means programmes of such description as the Secretary of State shall pursuant to Section 277(2) of the Communications Act from time to time by order specify; qualifying revenue has the same meaning as in Section 19 (2) to (6) of the 1990 Act and shall be ascertained in accordance with that Section and the Ofcom Statement of Charging Principles as from time to time revised by Ofcom in consultation with the Secretary of State and the Treasury pursuant to Part I of Schedule 7 thereto; Relevant Digital Switchover Dates means the dates by which transmission of the Analogue Service from the stations in each individual region listed in Part 4 of the Annex must have ceased, which dates are set out in a region by region sequence in the Digital Switchover Timetable, or such

8 earlier dates as shall be notified by the Corporation to Ofcom in writing and agreed by Ofcom; relevant international obligations means international obligations of the United Kingdom that are notified to Ofcom by the Secretary of State for the purposes of securing compliance under Condition 28; satellite television service shall be interpreted in accordance with section 273(7) of the Communications Act for the purpose of interpreting conditions (1E) to (1H) of this licence. schools programmes has the meaning given to that term in Section 296(12) of the Communications Act; Standards Code means the code or codes governing standards for the content of programmes, including standards and practice in advertising and in the sponsoring of programmes included in television and radio services as drawn up and from time to time revised by Ofcom in accordance with Section 319 of the Communications Act (and in the event that such code or codes has not or have not been drawn up by Ofcom or is not or are not yet in force, Standards Code shall be interpreted in accordance with paragraphs 41 and 43 of Schedule 18 to the Communications Act); Standards Complaint means a complaint about the observance of standards set under Section 319 of the Communications Act; Subsequent Licensing Period means any period for which the Licence is renewed in accordance with Section 231(7) of the Communications Act; Table of Digital Terrestrial Broadcasting Stations for Multiplex Licences means the table which sets out details of the digital terrestrial broadcasting stations for Multiplex 2 as published and revised from time to time by Ofcom, or any replacement to this table as may be published by Ofcom; Television Technical Performance Code means the code governing technical standards and practice in: (a) (c) programme production and acquisition; broadcasting available for reception by members of the public; and distribution (which shall be interpreted in accordance with Section 66(2) of the 1990 Act),

9 in the provision of Channel 3, and Channel 5 services as drawn up and from time to time revised by Ofcom; (2) The Interpretation Act 1978 shall apply for the purpose of interpreting this Licence as if it was an Act of Parliament. (3) Any word or expression used in this Licence shall unless otherwise defined herein and/or the context otherwise requires have the same meaning as it has in the 1990 Act, the 1996 Act or the Communications Act, as the case may be. (4) For the purposes of interpreting this Licence headings and titles shall be disregarded. (5) The statutory references in the margins are for purposes purely of convenience and shall not affect the interpretation or construction of the Licence or limit the statutory basis for the inclusion of the relevant Condition in the Licence. (6) Where an order is made under the Deregulation and Contracting Out Act 1994 which authorises a person to exercise any functions of Ofcom, the relevant references in the Licence to Ofcom shall include a reference to that person. (7) This Licence shall be governed by English law.

10 Part 2 General conditions 2. Provision of the service by the Corporation Section 231 of the Communications Act (see also paragraph 47 of Schedule 18 to the Communications Act) Commencement Order 2009 Section 272 of the Communications Act 2003 (1) The Corporation shall supply the Qualifying Service to the holder of the C3/C4 multiplex licence for broadcast. (1 A) The Licensee shall ensure that Channel Four Television Corporation, so far as it is in digital form, is at all times offered as available (subject to the need to agree terms) to be broadcast or distributed by means of every appropriate network. (1 B) The Licensee shall do his best to secure that arrangements are entered into and kept in force that ensure: a) that the Channel Four Service, so far as it is provided in digital form, is broadcast or distributed on appropriate networks; and b) that the broadcasting and distribution of the Channel Four Service, in accordance with those arrangements, result in its being available for reception, by means of appropriate networks, by as many members of its intended audience as practicable. (1 C) The Licensee shall ensure that the arrangements entered into and kept in force, pursuant to condition (1B), above, prohibit the imposition, for or in connection with the provision of an appropriate network, of any charge that is attributable (whether directly or indirectly) to the conferring of an entitlement to receive Channel Four Television Corporation in an intelligible form by means of that network. (1D) The conditions (1A), (1B) and (1C), above, shall only apply in relation to times when Channel Four Television Corporation in its digital form is included in the list of must-carry services in section 64 of the Communications Act. (1 E) The Licensee shall ensure that the Channel Four Service, so far as it is provided in digital form, is at all times offered as available (subject to the need to agree terms) to be broadcast by means of every satellite television service that is available for reception by members of the public in the whole or a part of the United Kingdom. (1 F) The Licensee shall do his best to secure that arrangements are entered into, and kept in force that ensure: a) that the Channel Four Service, so far as it is

11 provided in digital form, is broadcast by means of satellite television services that are broadcast so as to be available for reception by members of the public in the United Kingdom; and b) that the broadcasting, in accordance with those arrangements, of Channel Four Television Corporation by means of those satellite television services results in its being available for reception in an intelligible form and by means of those services by as many members of its intended audience as practicable. (1G) The Licensee shall ensure that the arrangements entered into and kept in force, pursuant to condition (1F), above, prohibit the imposition, for or in connection with the provision of a satellite television service, of any charge that is attributable (whether directly or indirectly) to the conferring of an entitlement to receive Channel Four Television Corporation in an intelligible form by means of that service. (1H) The conditions (1E), (1F) and (1G), above, shall only apply in relation to a time when Channel Four Television Corporation is included, in its digital form, in the list of services that are must-provide services for the purposes of section 274 of the Communications Act. (2) The Corporation shall provide the Qualifying Service for the Licensing Period and in the Digital C4 Area and shall procure that: (a) except to such extent as Ofcom may otherwise agree, the Qualifying Service is equivalent in all material respects to the service the provision of which in analogue form was authorised by the Analogue Licence; as from the Relevant Digital Switchover Dates the Qualifying Service is broadcast from the stations specified in, and otherwise in accordance with, all the requirements set out in the Table of Digital Terrestrial Broadcasting Stations for Multiplex Licences; and in any event the coverage area to be achieved shall be equivalent to or, if and to such extent as Ofcom thinks fit, substantially the same as the coverage area that was achieved by the Analogue Licence by broadcasting from the stations specified in, and

12 otherwise in accordance with, all the requirements set out in Part 4 of the Annex; and in Wales by the relevant Channel 3 licensee by broadcasting from the stations specified in, and otherwise in accordance with, all the requirements set out in Part 5 of the Annex; (c) the programmes to be included in the Qualifying Service are broadcast in the Digital C4 Area on each day of the week and for up to 24 hours a day. (2A) Without prejudice to the generality of the foregoing, the Licensee shall ensure that the Qualifying Service is broadcast from the Whitehaven transmitting station using the relevant frequency and transmission parameters for Whitehaven set out in the Table of DigitalTerrestrial Broadcasting Stations for Multiplex Licences. (3) Subject to Condition 2(6) below and until the Relevant Digital Switchover Dates and in accordance with the provisions of paragraph 13 of Part 3 of the Annex, the Corporation shall provide the Analogue Service for the Licensing Period and in the Analogue C4 Area by procuring that the programmes to be included in the Analogue Service are broadcast from the stations specified in, and otherwise in accordance with Part 4 of the Annex, and on each day of the week for up to 24 hours a day. (4) The Corporation shall, in the provision of the Analogue Service, include the same programmes (apart from advertisements) as are included in the Qualifying Service and at the same times at which they are broadcast in that service. (5) The Corporation shall be required to provide the Analogue Service until the Relevant Digital Switchover Date, subject to giving effect to any directions given from time to time to Ofcom by the Secretary of State about the continuance of the provision of the Analogue Service. (6) Nothing in this Licence shall constitute or imply any warranty, representation or obligation on the part of Ofcom as to the size or location of the areas actually capable of receiving the programmes provided by the Corporation pursuant to the Licence or that programme services provided by the holder of any other licence shall not be capable of reception in the whole or any part of the C4 Area.

13 (7) The Corporation shall not be authorised by or under the Licence to broadcast or procure the broadcasting of anything other than the Service, subtitling in connection with programmes on the Service and services (other than subtitling) which are ancillary to programmes included in the Service and directly related to their content or relate to the promotion or listing of such programmes. 3. Prohibition on the imposition of charges Sections 231(9) and (10) of the Communications Act The Corporation shall not impose any charges, whether directly or indirectly, on persons in respect of their reception in the United Kingdom of: [NB contravention of this Condition will also be unlawful by virtue of Section 231(9)] (a) (c) the Service; any service consisting in the provision of assistance for disabled people in relation to programmes included in the Service; any service (other than one mentioned in Condition 3 above) which is an ancillary service (as defined in Section 24(2) of the 1996 Act) in relation to the Qualifying Service. 4. Fees Section 4 (1), (3) and (4) of the 1990 Act (1) The Corporation shall pay to Ofcom such fees as Ofcom may determine in accordance with the tariff fixed by it and for the time being in force under Section 4(3) of the 1990 Act, details of which, and of any revision thereof, Ofcom shall from time to time publish in such manner as it considers appropriate. (2) Payment of the fees referred to in Condition 4(1) shall be made in such manner and at such times as Ofcom shall specify. Section 4(1)(c) of the 1990 Act (3) The Corporation shall within 28 days of a request therefore provide Ofcom with such information as it may require for the purposes of determining or revising the tariff referred to in Condition 4(1) above. 5. Contributions to the national television archive Section 185 of the 1990 Act (1) The Corporation shall pay to Ofcom on each anniversary of the Commencement Date throughout the Licensing Period or on such other date in each year of the Licensing Period as Ofcom may specify such amount as

14 Ofcom shall notify to the Corporation, being the Corporation s contribution towards the expenses incurred by the Nominated Archive Body in connection with the maintenance by it of a national television archive (2) Payments under this Condition 5 shall be made in such manner as Ofcom may from time to time specify. 6. V.A.T. Section 4(1) and (d) of the 1990 Act (1) The Corporation shall pay any V.A.T. on any supply for V.A.T. purposes by Ofcom under this Licence on presentation of a valid VAT invoice. (2) Without limitation to Condition 6(1) above, all sums payable by the Corporation are exclusive of V.A.T. which shall be paid by the Corporation in addition to such sums. (3) In this Condition 6 V.A.T. means value added tax chargeable under or pursuant to the Value Added Tax Act 1994, including any amendment to or replacement of that Act, and/or any similar tax. 7. Public service remit and programme policy Section 265(1) of the Communications Act (1) The Corporation shall ensure that it fulfils the public service remit, in the provision of the Service, to provide a broad range of high quality and diverse programming (or such remit as may from time to time be modified by the Secretary of State pursuant to Section 271(1) of the Communications Act) which, in particular: (a) (c) (d) demonstrates innovation, experiment and creativity in the form and content of programmes; appeals to the tastes and interests of a culturally diverse society; makes a significant contribution to meeting the need for the licensed public service channels to include programmes of an educational nature and other programmes of educative value; and exhibits a distinctive character. Section 266 of the Communications Act (2) The Corporation shall prepare a statement of programme policy (in accordance with the requirements of Condition 7(4) below) as soon as practicable after the commencement of Section 266 and subsequently at annual intervals: (a) setting out his proposals for securing that, during the following year,

15 (i) the public service remit for the Service will be fulfilled; and (ii) the duties imposed on him under Conditions 8 to 13 and Condition 15 below and by virtue of Sections 277 to 296 of the Communications Act (as applicable to the Service) will be performed; and containing a report on its performance in carrying out, during the period since the previous statement, the proposals contained in that statement. (3) The Corporation shall monitor its own performance in the carrying out of the proposals contained in the statements made in pursuance of Condition 7(2) above. (4) Each statement of programme policy must be: (a) (c) (d) prepared having regard to guidance drawn up and from time to time revised by Ofcom in accordance with Section 266(5) and (6) of the Communications Act; prepared taking account of the reports previously published by Ofcom under Sections 264 and 358 of the Communications Act and in particular take special account of the most recent such reports; published by the Corporation as soon as practicable after its preparation is complete; and published in such manner as the Corporation considers appropriate having regard to the guidance referred to in Condition 7(4)(a) above. Section 267 of the Communications Act (5) If the Corporation s statement of programme policy contains proposals for a significant change (which shall be determined in accordance with Section 267(4) and Section 267(5) of the Communications Act including any guidance issued and from time to time revised by Ofcom) as a result of which the Service would in any year be materially different in character from in previous years, the Corporation shall: (a) consult Ofcom before preparing the statement; and take account, in the preparation of the statement, of any opinions expressed to it by Ofcom. (6) If it appears to Ofcom that a statement of programme policy has been prepared by the Corporation in contravention of Condition 7(5) above, the Corporation shall, in accordance with any directions given to him by

16 Ofcom: (a) revise such statement; and publish a revision of such statement after it has been approved by Ofcom. Section 266(7) and (8) of the Communications Act (7) Without prejudice to the requirement in Condition 7(2) above as to the time at which the Corporation is required to make the first statement of programme policy, the Corporation s statement of policy that is in force on the date of commencement of Section 266 of the Communications Act shall be treated as if it were a statement for the time being in force until the statement required by Condition 7(2) has been prepared and published in accordance with the requirements of this Condition Regional programme-making Section 288(1) and (4) of the Communications Act (1) The Corporation shall include in the Service programmes made in the United Kingdom outside the M25 area: (a) in the proportions specified in paragraph 6 of Part 1 of the Annex; and which, taken together, constitute a suitable range of such programmes. (2) The Corporation shall ensure that the proportion of expenditure specified in paragraph 6 of Part 1 of the Annex (determined by reference to the expenditure of the Corporation on programmes made in the United Kingdom) is referable to programme production at different production centres outside the M25 area which, taken together, constitute a suitable range of such production centres. (3) In complying with this Condition 8, the Corporation shall have regard to any guidance that may be issued by Ofcom. (4) In this Condition 8, programme does not include an advertisement, and expenditure, in relation to a programme, has the meaning given to it in Section 288(5) of the Communications Act. 9. Involvement of the Corporation in programme making Section 295 of the Communications Act (1) The Corporation shall not be involved in the making of programmes to be broadcast as part of the Service, except to such extent as Ofcom may from time

17 to time allow. (2) In this Condition 9 programme does not include an advertisement. 10. Schools programmes Section 296 of the Communications Act (1) The Corporation shall: (a) (c) acquire from other persons, or finance the production of, such numbers of hours of schools programmes in each calendar year of the Licensing Period as Ofcom may from time to time specify; ensure that the time allocated to schools programmes included in the Service constitutes no less than the total amount of time specified in paragraph 4 of Part 1 of the Annex; include in any statement of programme policy and, as relevant, statement of content policy, its plans for the delivery of materials to schools otherwise than by the inclusion of programmes in the Service and shall notify Ofcom in advance of the proposed annual expenditure on such materials; and (d) from time to time consult such bodies or other persons who are concerned with, or have an interest in, schools or the production of schools programmes as Ofcom may from time to time specify. (2) The Corporation shall ensure that any schools programmes included in the Service are of high quality and are suitable to meet the needs of schools throughout the United Kingdom. (3) In determining the proportion of Schools programmes to be included in the Service, Ofcom will take into account services, facilities and materials that the Corporation provides to schools otherwise than by the inclusion of programmes in the Service. 11. Section 285 of the Communications Act Commissioning of independent productions (1) The Corporation shall draw up and from time to time revise a code of practice setting out the principles that it will apply when agreeing terms for the commissioning of independent productions, such code in particular to secure in the manner described in guidance issued by

18 Ofcom that: 11. (a) (c) (d) (e) (f) a reasonable timetable is applied to negotiations for the commissioning of an independent production and for the conclusion of a binding agreement; there is what appears to Ofcom to be sufficient clarity, when an independent production is commissioned, about the different categories of rights to broadcast or otherwise to make use of or exploit the commissioned production, that are being disposed of; there is what appears to Ofcom to be sufficient transparency about the amounts to be paid in respect of each category of rights; what appears to Ofcom to be satisfactory arrangements are made about the duration and exclusivity of those rights; procedures exist for reviewing the arrangements adopted in accordance with the code and for demonstrating compliance with it, such procedures to include requirements for the monitoring of the application of the code and for the making of reports to Ofcom; provision is made for resolving disputes arising in respect of the provisions of the code (by independent arbitration or otherwise) in a manner that appears to Ofcom to be appropriate. (2) The Corporation shall ensure that the drawing up or revision of a code made pursuant Condition 11(1) above is in accordance with guidance issued by Ofcom as to: (a) (c) the times when it is to be drawn up or reviewed with a view to revision; the consultation to be undertaken before it is drawn up or revised; and its publication and publication of any revision or replacement of it, and such code and any revision to it shall be submitted to Ofcom for approval and have effect subject to that approval and such modifications as Ofcom may require. (3) The Corporation shall from time to time make any revisions that are necessary to take account of revisions of the guidance issued by Ofcom referred to in Condition

19 11(2) above. (4) The Corporation shall ensure that it complies at all times with any code drawn up and for the time being in force pursuant to this Condition Broadcasting of independent productions Section 277 of the Communications Act (1) The Corporation shall ensure that in each calendar year of the Licensing Period not less than the percentage amount specified in paragraph 7 of Part 1 of the Annex (or such other percentage that the Secretary of State may from time to time by order specify pursuant to Section 277(3) of the Communications Act) of the total amount of time allocated to the broadcasting of qualifying programmes in the Service is allocated to the broadcasting of a range and diversity of Independent Productions. (2) For the purposes of Condition 12(1) above, the reference to a range of Independent Productions is a reference to a range of such productions in terms of cost of acquisition and the types of programmes involved. (3) The Corporation shall comply with any further requirements that Ofcom may from time to time impose pursuant to Section 277(4) of the Communications Act in relation to the percentage of programming budget that is applied in the acquisition (which includes commissioning and acquisition of a right to include a programme in the Service or to have it broadcast) of Independent Productions (determined in accordance with an order made under Section 277(9) of the Communications Act). (4) The Corporation shall comply with any direction of Ofcom for the purpose of carrying forward to one or more subsequent years any shortfall for any year in his compliance with the requirements of Condition 12(1) and (3) above and thereby increasing the percentage applicable for the purposes of those Conditions to the subsequent year or years. (5) In complying with this Condition 12, the Corporation shall have regard to any guidance that may be issued by Ofcom. (6) In this Condition 12 programme does not include an advertisement. 13. Original productions Section 278 of the (1) The Corporation shall ensure that in each calendar year

20 Communications Act of the Licensing Period: (a) not less that the percentage amount specified in paragraph 5 of Part 1 of the Annex by time of the programmes included in the Service are original productions or commissions for the Service; and the time allocated to the broadcasting of original productions is split between peak viewing times and other times in the manner specified in paragraph 5 of Part 1 of the Annex. (2) In determining the programmes of which a proportion is to consist of original programmes, there may be excluded such descriptions of programmes as may be specified in guidance prepared, and from time to time revised, by Ofcom pursuant to Section 278(3) of the Communications Act. (3) For the purposes of this Condition 13 programme does not include an advertisement; and original productions shall be determined in accordance with an order made under Section 278(6) of the Communications Act. 14. Sections 319,320 and 325 (1) of the Communications Act General standards and requirements The Corporation shall ensure that the provisions of the Standards Code are observed in the provision of the Service. 14(A) (1) The Licensee shall be responsible for all arrangements for the management of communication, including telephony, between members of the public and the Licensee or the Licensee s contractors or agents (together here described as the Licensee ) where such communication is publicised in programmes. Communication includes, but is not limited to, methods of communication in which consideration is passed between a member of the public and the Licensee directly or indirectly and methods of communication intended to allow members of the public to register with the Licensee indications of preference or intended to allow entry to any competition, game or scheme operated by the Licensee. (2) (a) Arrangements for the management of methods of communication publicised in programmes and intended to allow communication between members of the public

21 and the Licensee must ensure, in particular, that: (i) (ii) (iii) reasonable skill and care is exercised by the Licensee in the selection of the means of communication and in the handling of communications received; voting, competitions, games or similar schemes are conducted in such ways as to provide fair and consistent treatment of all eligible votes and entries; and publicity in programmes for voting, competitions, games or similar schemes is not materially misleading. In addition to the requirements in sub-paragraph 2(a), the Licensee shall ensure that the provisions of the code approved by Ofcom for regulating the provision of premium rate services, or in the absence of such a code, the terms of any order made by Ofcom for such purposes, are observed in the provision of the Licensed Service. (3) (a) The Licensee shall implement and maintain appropriate compliance procedures to ensure arrangements for the management of methods of communication publicised in programmes and intended to allow communication between members of the public and the Licensee fulfil all the requirements set out in paragraph 2 above. Where the Licensee uses a Controlled Premium Rate Service as defined under the PRS Condition in force at the time made under section 120 of the Communications Act 2003 as the method of communication for voting or competitions publicised within programme time, the Licensee shall ensure that its compliance procedures include a system of verification by an appropriate independent third party ( the third party ), in accordance with the following requirements: (i) (ii) Verification shall include confirmation by the third party that an end-to-end analysis of the technical and administrative systems to be used for the receipt and processing of votes and competition entries from members of the public has been conducted and that such systems fulfil all the requirements set out in paragraph 2 above. All such systems and the analysis of such systems must be fully documented. Verification shall include appropriately regular reviews by the third party of individual programmes. Such reviews must track all votes

22 or competition entries through all stages from receipt, and the results of each review must be fully documented. (iii) (iv) (v) (vi) (vii) The Licensee shall ensure that a Director of the Board (or, where there is no Board, an appropriate equivalent) ( the designated Director) has specific responsibility for verification. The Licensee shall ensure that the third party provides reports regarding analyses of processes (as specified under sub-paragraph 3(i)) and reviews of individual programmes (as specified under sub-paragraph 3(ii)) to the designated Director. If significant irregularities or other problems are discovered, the Licensee shall ensure that these are reported forthwith to Ofcom. The Licensee shall provide forthwith and in an appropriate form any information requested by Ofcom regarding verification. The Licensee shall retain for at least two years all relevant data regarding votes and competition entries from callers by means of Controlled Premium Rate Services and all documentation regarding the verification of its systems (as specified under sub-paragraph 3(i)) and the reviews of individual programmes (as specified under sub-paragraph 3(ii)). The Licensee shall publish annually a statement signed by the designated Director confirming that he is satisfied that the Licensee has in place suitable procedures to fulfil the requirements of paragraph 3 and confirming the name of the third party engaged by the Licensee to fulfil the requirements of paragraph News and current affairs Section 279 of the Communications Act (1) The Corporation shall include news programmes and current affairs programmes in the Service that are of high quality and deal with both national and international matters. (2) The Corporation shall ensure that the time allocated to news programmes included in the Service and current affairs programmes included in the Channel 4 Service: (a) constitutes in each case no less than the total amount of time specified in paragraphs 2 and 3 of

23 Part 1 in the Annex (such time being an appropriate proportion of the time allocated to the broadcasting of all the programmes included in the channel); and is, in each case, split between peak viewing times and other times in the manner specified in paragraphs 2 and 3 of Part 1 in the Annex. (3) In complying with this Condition 15, the Corporation shall have regard to any guidance that may be issued by Ofcom. 16. Party political broadcasts Section 333 of the Communications Act (1) The Corporation shall include in the Service party political broadcasts and referendum campaign broadcasts (as defined in the Political Parties, Elections and Referendums Act 2000) in accordance with such rules as are referred to in paragraph 38 of Schedule 18 to the Communications Act or as from time to time may be made by Ofcom pursuant to Section 333(1) of the Communications Act with respect to such matters. (2) Such rules may include, without limitation, provision with regard to: the political parties on whose behalf political broadcasts may be made, the length and frequency of such broadcasts, and the length and frequency of referendum campaign broadcasts that are required to be broadcast on behalf of each designated organisation (as defined in Section 333(6) of the Communications Act). 17. Listed events Section 101(1) of the 1996 Act (see also Section 300(2) of the Communications Act) (1) The Corporation shall comply in all respects with the listed events provisions of the 1996 Act and, for the avoidance of doubt, provisions contained in this Condition 17 that derive from amendments made to the 1996 Act by the Communications Act shall apply only from such time as relevant Sections of that Act are commenced. (2) The Corporation shall not include within the Service (the first service ) live coverage of the whole or any part of a listed event unless: (a) (i) another person who is providing a service falling within Section 98(1) of the 1996 Act (the second service ) has acquired the right to include in the second service live coverage of the whole of the event or of that part of the event; and (ii) the area for which the second service is

24 provided consists of or includes the whole, or substantially the whole, of the area for which the first service is provided; or (c) Ofcom has consented in advance to inclusion of that coverage in the first service; or the event is a Group B event for which rights to provide coverage have been acquired by one or more other persons in addition to the Corporation; and Section 104ZA and 101 (1)(C) of the 1996 Act (see Section 302(1) of the Communications Act) (i) (ii) that additional coverage constitutes adequate alternative additional coverage of the event; and the person or persons who have acquired rights to provide the additional coverage satisfy the requirements in relation to that coverage of any regulations made by Ofcom in accordance with Section 104ZA of the 1996 Act. (3) Condition 17(2) shall not apply where: Section 97(5)(a) of the 1996 Act (see also Section 299(3) of the Communications Act) (a) the Corporation is exercising rights acquired before 1st October 1996; and the Corporation is exercising rights acquired in relation to an event listed after 1st October 1996 where such rights were acquired before the date referred to in Section 97(5)(a) of the 1996 Act. Section 97(5A) & (5B) of the 1996 Act (see Section 299(4) of the Communications Act (4) The allocation or transfer of an event to Group A: (a) shall not affect the validity of rights acquired in relation to that event where such rights were acquired before the date referred to in Section 97(5A) of the 1996 Act; and where the Secretary of State makes a direction in accordance with Section 97(5B), will not affect the application of Condition 17(2)(c) which will continue to apply in relation to a Group B event that is transferred to Group A as if the event remained a Group B event. Section 101(1) of the 1996 Act (see also Section 300(2) of the Communications Act (5) Except where otherwise stated, this Condition 17 applies to the Service if and to the extent that the Service is made available (within the meaning of Part 3 of the Communications Act) for reception by members of the public in the United Kingdom or in any

25 area of the United Kingdom. Section 101B(1) of the 1996 Act (6) The Corporation shall not, without the previous consent of Ofcom, exercise any rights to televise, for reception in another EEA State, the whole or part of an event: Section 101A of the 1996 Act (a) that has been designated by that other EEA State, and notified by it to the European Commission, in accordance with Article 3a of the Television Without Frontiers Directive, as being of major importance to its society; and where a substantial proportion of the public in that State is deprived of the possibility of following that event by live or deferred coverage on free television as determined by that State in accordance with Article 3a of the Television Without Frontiers Directive. (7) For the purposes of this Condition 17: Section 104ZA of the 1996 Act (see Section 302(1) of the Communications Act) Section 104(1) of the 1996 Act (see also Section 301(1) of the Communications Act) (a) (c) the circumstances in which the televising of listed events generally, or of a particular listed event, is, or is not, to be treated as live for the purposes of Part IV of the 1996 Act shall be determined in accordance with the regulations referred to in Condition 17(2)(c)(ii) above; what is (whether generally or in relation to particular circumstances) to be taken to represent the provision of adequate alternative coverage shall be determined in accordance with the regulations referred to in Condition 17(2)(c)(ii) above; guidance as to the matters which Ofcom will take into account in determining: (i) whether to give or revoke their consent for the purposes of Condition 17(1) and 17(6); and (ii) whether to take action pursuant to Conditions 39(4)(a) or 39(4) in circumstances where the Corporation fails to comply with Conditions 17(2) or 17(6); shall be provided in the Code on Sports and Other Listed and Designated Events. (8) The Corporation shall supply to Ofcom such information as Ofcom may reasonably require to determine the Corporation's compliance with this Condition 17 and for the purposes of determination made by it pursuant to Section 102 or Section 103 of the 1996 Act.

26 18. Advertising and sponsorship standards and requirements Section 322 of the Communications Act (1) The Corporation shall comply with all directions, whether general or specific and/or qualified or unqualified, given to him by Ofcom, with respect to: (a) (c) (d) the maximum amount of time to be given over to advertisements in any hour or other period; the minimum interval which must elapse between any two periods given over to advertisements; the number of such periods to be allowed in any programme or in any hour or day; and the exclusion of advertisements from a specified part of the Service, which directions may make different provision for different parts of the day, different parts of the week, different types of programmes or for other differing circumstances. Sections 325(4) and (5) and 321(4) of the Communications Act (2) The Corporation shall comply with all directions given to it by Ofcom with regard to advertisements or methods of advertising or sponsorship, including without limitation directions with respect to: (a) (c) the exclusion from the Service of a particular advertisement, or its exclusion in particular circumstances; the descriptions of advertisements and methods of advertising to be excluded from the Service (whether generally or in particular circumstances); and the forms and methods of sponsorship to be excluded from the Service (whether generally or in particular circumstances). Sections 121 to 123 and 321(4) of the Communications Act Sections 321(1) and 321(4) of the Communications Act (3) The Corporation shall ensure that the provisions of the code approved by Ofcom for regulating the provision of premium rate services, or in the absence of such a code, the terms of any order made by Ofcom for such purposes, are observed in the provision of the Service. (4) The Corporation shall ensure that the provisions of the Standards Code set to secure the objectives in Section 319(2)(a) and (g) to (j) of the Communications Act and relating to standards and practice in advertising and sponsorship of programmes and any prohibitions of advertisements and forms and methods of advertising or

27 sponsorship of programmes are observed in the provision of the Service. Section 321(4) of the Communications Act (5) The Corporation shall supply to Ofcom details, in whatever form and within such period as Ofcom may reasonably require, of any particular advertisement or any class of advertisement specified by Ofcom or any sponsored programme which Ofcom shall from time to time request. 19. Subtitling, signing and audio-description Section 307(1) of the Communications Act The Corporation shall ensure that the provisions of the Code on Subtitling, Signing and Audio-Description are observed in the provision of the Service and the Corporation shall provide subtitling, signing and audio-description in the amounts set out in paragraph 8 of Part 1 of the Annex. 20. Provision of additional services Section 49 of the 1990 Act (1) Ofcom reserves the right to license under the 1990 Act any or all of the spare capacity within the signals carrying the Analogue Service which Ofcom determines to be available for the provision of additional services having regard to the Corporation's rights and obligations to provide subtitling and to the need of the Corporation to be able to use part of the signals carrying the Analogue Service for providing services which are ancillary to programmes included in the Analogue Channel 4 Service and directly related to their contents or relate to the promotion or listing of such programmes. (2) Nothing in this Licence shall authorise the Corporation to broadcast or procure the broadcasting of any picture, sound, text or other signals on the spare capacity referred to in Condition 20(1). (3) The Corporation shall grant to any person who holds a licence to provide additional services on any frequency on which the Analogue Service is provided, and to any person authorised by any such person pursuant to Section 49(8) of the 1990 Act to provide additional services on that frequency, access to facilities reasonably required by that person for the purposes of, or in connection with, the provision of any such additional services. Section 276 of the Communications Act (4) The Corporation shall grant to any person who holds a licence to provide the public teletext service and to any person authorised by virtue of Section 220 of the Communications Act to provide the whole or part of such service on his behalf, access to the facilities that are reasonably required for the purposes of or in connection with the provision of that service.